SAN ANTONIO, Feb. 23, 2021 (GLOBE NEWSWIRE) – A new analysis by Verify Markets shows that the rental market for North American electrical distribution equipment in 2020 is estimated at $ 395.8 million.
“The outbreak of COVID-19 had a negative impact on the revenues of electricity distribution equipment rental companies during the first three quarters of 2020 and will continue to affect market growth over the short-term forecast period. In addition, the market will face other challenges such as low oil and gas prices and declining non-residential construction, ”said Georgina Carraway, senior adviser to Verify Markets.
Demand for the rental of electrical distribution equipment is directly affected by the level of economic activity in the construction industry, which represents 18.0 of the total market. The COVID pandemic has severely affected the construction industry as many projects have been delayed or canceled. Spending on non-residential construction projects is declining and will remain so until 2021. However, the successful implementation of the COVID-19 vaccine program, federal incentive accounts, stronger international growth and the need for extensive refurbishment of buildings after the pandemic are expected to boost construction activity after 2021 .
In addition to weaker activity in the construction sector, the electrical equipment rental market is also a mature, well-established market, with strong demand in various customer segments. Market participants expect the market to return to its previous growth rates by the third quarter of 2021.
The utility sector is expected to be one of the main end users of electricity distribution equipment, driven by the old electricity infrastructure. Electricity generation infrastructure is aging rapidly and is unable to meet current demand. About 70.0 percent of grid and power transformers in the U.S. are more than 25 years old, and the average power plant is more than 30 years old. Constant demand for more energy by the industrial, data center, computer and telecommunications segment; and the integration of renewable energy technologies is projected to continue to increase demand for temporary power as utilities require the lease of electricity distribution equipment during plant and network expansion, service and maintenance.
Other factors, such as increased urbanization and building growth, the recovery of industrial activities and the continuous transition from ownership to rent, are expected to boost the growth of the electricity distribution equipment rental market over the forecast period.
The report on the electricity rental market for electricity distribution equipment is divided by end users, type of equipment and voltage. The main customers are oil and gas, utilities, industry, trade, construction and entertainment. The oil and gas sector has traditionally been one of the main end users of rental generators. However, lower oil and gas prices affected investment in exploration and production, reducing the share of the oil and gas segment in the electricity rental industry. This sector accounted for 30.0 percent of the total market during 2020. The live events sector was one of the most vulnerable sectors of the COVID-19 pandemic as most major events and parties were canceled or postponed.
Some of the key companies covered by this report include Aggreko plc., Caterpillar, Inc., United Rentals, Inc., Sunbelt Rentals, Inc. and Herc Rentals, Inc. This report provides a detailed analysis of the overall North American state. Electrical distribution equipment rental market. The report records various market dynamics such as growth drivers, constraints, market revenues and forecasts, technological trends and the competitive environment.
A copy North American electrical distribution unitrental market You can get the research report at www.verifymarkets.com. Follow us for more news on Twitter @verify_markets i LinkedIn. This report is part of Verify Markets’ energy and energy equipment market research and consulting practices. Other reports on the electricity rental market:
Our research methodology consists of extensive primary interviews with key industry participants, along with an analysis of secondary resources to validate our information. For more information about this report and other research (including customized reports and consulting), contact [email protected] or call +1 210.595.9687.